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PayPal is used for online payments all around the world including KSA. Both seller and customers can exchange payments easily using PayPal. PayPal is indeed the emerging new trend. So for your ease, we will be guiding you on each aspect of PayPal usage in Saudi Arabia.
What is PayPal?
PayPal is a safe way of not only making online payments but also receiving money. Both sellers and customers can use PayPal services. Payments can be exchanged by making an account at PayPal. Unfortunately, Paypal is not used widely in KSA, unlike European countries where all websites accept Paypal payments.
The customers who want to transact payments to a retailer are not liable to share their confidential financial information. This is made possible because of the availability of PayPal’s preloaded balance. This balance comes from the bank account or a linked credit card. Yes, you can link a credit card issued by a KSA bank with a PayPal account.
PayPal enables sellers to send an invoice to the customer without using the website. Merchants can also set a Buy Button tab on their websites which links to PayPal. Some websites in KSA have used PayPal service on their website. Recommended: Where can I use my PayPal balance in Saudi Arabia?
PayPal allows merchants and customers to enjoy its services all over the world including KSA. Both need to have accounts at PayPal, yet Merchants will be required to open a business account while customers shall sign up for an individual account.
Opening a PayPal account
People of KSA can create an account by visiting PayPal’s website. (here is the link for you: https://www.paypal.com/sa/webapps/mpp/home). Simply open an account here and enjoy PayPal’s services.
Verify a PayPal Account
The next step is to Verify a PayPal Account. We have explained the procedure in detail to Verify a PayPal Account in KSA. Recommended: How to Verify a PayPal Account in Saudi Arabia?
Transferring money into a PayPal account from a bank account
One can transfer money from his bank account to PayPal account, however, citizens of KSA have to wait until the feature is introduced here. Round of discussions is being held between PayPal and KSA banks.
The money transfer from the bank account to PayPal’s account is known as ‘Instant Top-up’. Under this, the PayPal accounts get top-up by the money in one’s bank account.
One can top up with the amount of money they wish for shopping purpose. Great isn’t it, consumers can top up their PayPal account from their bank account.
So we can hope that negotiation between banks in KSA and PayPal are successful as once this is initiated, it would benefit many of us!
Transferring money from a PayPal account into a bank account
This service can be used by Merchants. When a company initiates a PayPal account for online selling and receiving transactions, they can transfer money that comes in their PayPal account into their Bank accounts.
The money from the PayPal account can also be transferred to the Visa card. However, PayPal’s account money cannot be transferred to banks in KSA, they are working on it yet no statements are made.
So wait and hope for the best! For now, transfers can be made into all banks of USA, or in Cairo Amman Bank (Jordan) or in Attijariwafa Bank (Morocco).
PayPal allows its users to transfer money in about 100 currencies. The money from PayPal’s account can be transferred into a bank account in 57 different currencies which does not include KSA.
PayPal’s balance can be maintained in 26 currencies, among which the official currency of Saudi Arabia, the Saudi Riyal is not included. Changes are soon to be expected.
Transaction fees: Here is a detail of transaction fees levied by PayPal:
- For transferring money from PayPal account to Visa Card: $5
- Withdrawing money from USA bank: no fees.
- Receiving up to $ 3000 per month: 4.9% rate and $ 0.30 per transaction
- For receiving more than $3,000 monthly: Merchant rate of 3.9%